Investing.com – European stock markets were broadly lower on Monday, amid reports of another strong earthquake hitting Japan and as automakers led declines after a brokerage downgrade, while U.S. futures indexes pointed to a higher open on Wall Street.
During European morning trade, the EURO STOXX 50 slumped 0.5%, France’s CAC 40 dropped 0.7%, while Germany's DAX 30 fell 0.59%.
Market sentiment was weighed after a 7.1 magnitude earthquake rocked Northeast Japan and a tsunami warning was issued for Ibaraki prefecture.
Shares in European automakers performed poorly after Credit Suisse lowered its recommendation on the sector, citing “an environment of declining earnings, rising capex spending and slowing volume momentum in both developed and emerging markets".
Europe’s largest automaker Volkswagen slumped 2.35%, rival Daimler saw shares drop 3.1%, while French automakers Renault and Peugeot declined 2.6% and 1.9% respectively.
Meanwhile, shares in the airline sector were broadly lower on concerns that higher fuel costs would weigh on profits as oil prices hovered close to a 30-month high. Europe’s largest airliner Deutsche Lufthansa saw shares drop 1.3% while shares in Air France-KLM fell 1.1%.
In London, the FTSE 100 edged 0.1% higher as banks performed strongly after the U.K.’s Independent Commission on Banking published its reform proposals for the industry.
Shares in Barclays jumped 3.45%, Royal Bank of Scotland advanced 2.7%, while Lloyds Banking Group added 1.4%. The commission said the country’s biggest lenders should have a minimum equity capital ratio of 10% and retail banking operations should be separated from riskier investment banking arms.
Meanwhile, shares in mining giant BHP Billiton rose 1.8% after the Sunday Times reported that it was in talks to acquire Australia’s second largest oil producer Woodside Petroleum for GBP29.6 billion.
The outlook for U.S. equity markets, meanwhile, was upbeat. The Dow Jones Industrial Average futures pointed to a gain of 0.29%, S&P 500 futures indicated a rise of 0.1%, while the Nasdaq 100 futures edged 0.15% higher.
Later in the day, the largest U.S. aluminum producer Alcoa was to be the first Dow Jones Industrial Average component to report earnings for the first quarter.
Also Monday, Federal Reserve Governors Charles Evans, William Dudley and Janet Yellen were to speak at public engagements.
During European morning trade, the EURO STOXX 50 slumped 0.5%, France’s CAC 40 dropped 0.7%, while Germany's DAX 30 fell 0.59%.
Market sentiment was weighed after a 7.1 magnitude earthquake rocked Northeast Japan and a tsunami warning was issued for Ibaraki prefecture.
Shares in European automakers performed poorly after Credit Suisse lowered its recommendation on the sector, citing “an environment of declining earnings, rising capex spending and slowing volume momentum in both developed and emerging markets".
Europe’s largest automaker Volkswagen slumped 2.35%, rival Daimler saw shares drop 3.1%, while French automakers Renault and Peugeot declined 2.6% and 1.9% respectively.
Meanwhile, shares in the airline sector were broadly lower on concerns that higher fuel costs would weigh on profits as oil prices hovered close to a 30-month high. Europe’s largest airliner Deutsche Lufthansa saw shares drop 1.3% while shares in Air France-KLM fell 1.1%.
In London, the FTSE 100 edged 0.1% higher as banks performed strongly after the U.K.’s Independent Commission on Banking published its reform proposals for the industry.
Shares in Barclays jumped 3.45%, Royal Bank of Scotland advanced 2.7%, while Lloyds Banking Group added 1.4%. The commission said the country’s biggest lenders should have a minimum equity capital ratio of 10% and retail banking operations should be separated from riskier investment banking arms.
Meanwhile, shares in mining giant BHP Billiton rose 1.8% after the Sunday Times reported that it was in talks to acquire Australia’s second largest oil producer Woodside Petroleum for GBP29.6 billion.
The outlook for U.S. equity markets, meanwhile, was upbeat. The Dow Jones Industrial Average futures pointed to a gain of 0.29%, S&P 500 futures indicated a rise of 0.1%, while the Nasdaq 100 futures edged 0.15% higher.
Later in the day, the largest U.S. aluminum producer Alcoa was to be the first Dow Jones Industrial Average component to report earnings for the first quarter.
Also Monday, Federal Reserve Governors Charles Evans, William Dudley and Janet Yellen were to speak at public engagements.